Table of Contents
This comprehensive guide will walk you through the ins and outs of the EB-5 visa requirements, helping you understand the visa’s criteria to make informed decisions in your journey to obtaining a green card in the U.S. through an investment.
General EB-5 Visa Requirements
EB-5 Visa Green Card Checklist: What You’ll Need to Qualify
Use this checklist to confirm whether you meet the key eligibility requirements under the EB-5 Immigrant Investor Program:
☐ Have you invested the required minimum?
‣ $1,050,000 for standard investments
‣ $800,000 if your project is in a Targeted Employment Area (TEA) or infrastructure category
☐ Is your investment in a qualifying business?
‣ A for-profit commercial enterprise
‣ Formed after November 29, 1990, or restructured if older
☐ Will your investment create 10 full-time jobs?
‣ Direct hires for direct investments
‣ Indirect jobs count if through a regional center
‣ Jobs must be at least 35 hours/week
☐ Can you document the source of your funds?
‣ Lawfully obtained (income, gifts, inheritance, sale of property, etc.)
‣ Traceable through bank records or supporting documents
☐ Is your capital truly at risk?
‣ No guarantees of return or repayment
‣ Must remain invested for at least two years
☐ Are you involved in managing the business?
‣ Required only for direct investments
‣ Day-to-day operations or strategic decision-making
To secure your green card or permanent residency status, you must meet these specific EB-5 visa requirements set by the U.S. Citizenship and Immigration Services (USCIS):
Direct Investment in a New Commercial Enterprise
One of your options is to invest in a new commercial enterprise in any industry. You can operate as a sole proprietor, work in a partnership or joint venture capacity, establish a corporation or LLC, or invest in other qualifying entities as long as it is a for-profit new commercial enterprise conducting lawful business.
The USCIS defines a “new commercial enterprise” as an enterprise established on or after November 29, 1990. If established before November 29, 1990, it can still qualify provided it is reorganized into a new enterprise or if your investment resulted in an expansion with a 40% increase in net worth or employee count.
On the other hand, you can invest in a troubled business. This troubled business must have been operating for at least two years prior to your investment, incurring a net loss during the one to two-year period prior to your Form I-526 priority date.
Moreover, this new commercial enterprise investment can be made in a non-targeted or targeted employment area. The difference lies in the investment amount, which we will discuss later.
It is also worth noting that a direct investment in a new commercial enterprise involves active participation in the enterprise’s management. Thus, this option is better suited for investors who wish to have direct control over the enterprise’s operations.
Indirect Investment in a Regional Center
Alternatively, you can take the opportunity to invest passively in a government-selected regional center in a targeted employment area. The USCIS defines a targeted employment area as an area that needs economic stimulation, such as a rural area or an area that has experienced high unemployment (at least 150% of the national average rate). As of April 2023, there are 640 government-selected regional centers across the United States.
These regional center projects provide foreign investors a way to obtain a green card via passively investing in projects like the construction of hospitals, nursing homes, etc., that are often located in impoverished areas. The way it works is the EB-5 centers pool resources from different investors for a large project.
The main advantage to this investment type is it is almost guaranteed to meet the 10 job creation requirement, which is often already met by the time the EB-5 petition is filed.
However, the main disadvantage is the investor cannot directly influence the enterprise. Thus, this opportunity may not be for you if you seek active control over operations. But if you want to invest the minimum amount to obtain a green card and do not necessarily wish to take an active role, this option is perfectly suitable.
Capital or Investment Requirement
The investment or capital requirement is the most straightforward criterion in the EB-5 category. If you are investing in a targeted employment area, whether via a new commercial enterprise (directly or actively) or a regional center project (indirectly or passively), the minimum investment amount is $800,000. If you actively invest in a non-targeted employment area, the minimum investment amount shoots up to $1.05 million.
Note that the investment amounts are subject to change according to inflation every five years. Ensure you are getting the most accurate information from the USCIS.
Job Creation
One of the most important EB-5 requirements is the preservation or creation of 10 full-time jobs for qualifying U.S. workers. Qualified U.S. workers are U.S. citizens, green card holders, or others with valid U.S. work authorization. However, your dependents cannot fill this position, even if they are authorized to work in the U.S. or with other immigrant investors.
This can be challenging, especially if the business is a direct investment or a start-up in a high-risk sector. To prevent issues, ensure that your business plan is well-written and includes a compelling strategy for job creation.
Furthermore, a full-time job is defined by the USCIS as requiring a minimum of 35 hours per week. Two part-time employees can fill a full-time position. However, positions requiring fully part-time employees are not qualified even if their total hours exceed 35 hours per week. It also excludes seasonal, intermittent, transient, or temporary jobs.
Personal Requirements
Unlike other visa categories that could lead to permanent residence, the EB-5 visa does not have specific professional or educational background requirements. So long as you have the capital to invest and have no criminal records, even minor infractions, you can safely qualify and apply for the EB-5 visa, especially if investing passively or indirectly into a regional center project.
However, it is worth noting that if you actively invest in a new commercial enterprise, you will be required to be part of the enterprise’s management or daily operations. This means you must avoid any suspicion that your position in the enterprise is not legitimate or only formally held.
Therefore, if you have qualifications that align with the position you will undertake, it is best to present them to remove doubt, even if the EB-5 category does not specifically require them. For instance, having had entrepreneurial ventures, related expertise or skills, or prior experiences in a managerial capacity would help.
To demonstrate that, you can provide documents such as academic transcripts, a well-written resume detailing your relevant experiences, documents pertaining to your other businesses, tax returns, letters of recommendations, and more.
Additionally, you must demonstrate or provide evidence that you have acquired the capital you are investing lawfully. If it comes from revenue, provide proof. If it is a gift or inheritance, you can demonstrate its legitimacy by providing documents and how the donor acquired the funds they gifted you.
Thus, demonstrating the lawful source of your investment funds is crucial. As part of the EB-5 visa requirements, you must provide documentation that traces the origin of your investment capital. This ensures transparency and helps prevent potential cases of money laundering or fraud.
EB-5 Application Process
The EB-5 visa application generally involves three steps:
Form I-526. This is the first petition to file. Ensure you work with a qualified and experienced EB-5 immigration attorney to craft a complete, accurate, and compelling petition. It includes all necessary documentation to demonstrate compliance with EB-5 visa requirements. Once approved, you can proceed to the next step.
Upon approval of your I-526 petition, you and your eligible dependents will be granted conditional permanent residency in the United States. This status is valid for two years and serves as a stepping stone toward obtaining unconditional permanent residency.
Note that if you are legally in the United States on a non-immigrant visa at the time your I-526 petition is approved, you may apply for an adjustment of status (Form I-485). This will allow you to transition from a non-immigrant status to an immigrant status while remaining in the U.S. Thus, you will not need to go through consular processing in your home country.
However, if you are outside the U.S. or if an adjustment of status does not apply to you, you must apply for your immigrant visa at a U.S. consulate in your home country. You will then receive a stamp on your passport and a conditional green card valid for two years.
Form I-829. In order to shift your conditional green card into an unconditional or permanent green card, you must file an I-829 petition within 90 days before your conditional green card expires to lift this reservation.
To succeed, you must demonstrate or prove that you have fulfilled the previously-discussed EB-5 requirements, most especially the preservation or creation of 10 full-time jobs for qualifying U.S. workers and investment maintenance. You will then receive a green card, granting you and your dependents unconditional permanent residency or the right to live, study, and work anywhere in the United States.
Here is a handy checklist of documents to prepare for your application:
Form I-526
Your and your dependents’ personal documentation, including passport, birth certificate, etc.
Proof of funds, such as bank statements, tax returns, and employment records
Investment documentation, such as investment agreement, evidence of capital transfer, escrow account, etc.
Job creation documentation, including business plan, economic impact report, payroll records, and I-9 forms)
Regional center documentation, if applicable
Completed Form I-526
Translations and certified copies, if applicable
Form I-829
Completed Form I-829
Filing fee payment receipt
Evidence of job creation, such as pay rolls and tax returns
Evidence of sustained investment, such as bank statements and financial records
Updated business plan showing the fulfillment of investment and job creation
Translations and certified copies, if applicable
Note that the following checklist above is a general recommendation. Depending on your case, you may need more or less evidence.
Consult with Immigration Business Plan’s Experienced EB-5 Experts
Navigating the complex EB-5 visa process requires legal expertise and a compelling business plan. Working with an experienced EB-5 immigration attorney ensures compliance with complex regulations, streamlines paperwork, and maximizes your chances of success.
Contact us at Immigration Business Plan for a free consultation. Our team of experienced EB-5 immigration attorneys and professional business plan writers is here to guide you toward success.
How Has the EB-5 Reform and Integrity Act of 2022 Impacted Investment Requirements?
Before the EB-5 Reform and Integrity Act of 2022, the EB-5 Immigrant Investor Program operated under long-standing rules that had not been updated in over a decade. Investors could qualify for permanent residency by investing either $1,000,000 in a commercial enterprise or $500,000 if the investment was made in a Targeted Employment Area (TEA). A TEA was broadly defined at the state level and could include rural locations or places with high unemployment. A standard EB-5 project refers to a business located outside those designated areas and not classified as a public infrastructure project.
Regardless of location, the project had to be a new commercial enterprise and create at least 10 full-time jobs for qualifying U.S. workers. The investor’s capital had to remain invested throughout the full two-year period of conditional permanent residency. There were no reserved visa allocations for investments in specific types of areas.
Signed into law on March 15, 2022, the EB-5 Reform and Integrity Act introduced several key changes to modernize the program, increase accountability, and promote economic development in underserved communities. Below are the most important updates related to investment requirements.
New Minimum Investment Amounts
The law increased the standard minimum investment from $1,000,000 to $1,050,000. For projects located in TEAs or for investments in qualifying infrastructure projects, the new minimum is $800,000. These amounts apply to petitions filed on or after March 15, 2022, and are scheduled to be reviewed for inflation adjustment every five years, starting January 1, 2027.
Redefined TEA Eligibility
The authority to define TEAs shifted from state governments to the United States Citizenship and Immigration Services (USCIS). Under the current rules, a TEA must fall into one of two categories. It must either be located in a rural area, a location outside a metropolitan statistical area or city with a population of more than 20,000, or it must be a high-unemployment area where the local unemployment rate is at least 150 percent of the national average.
Infrastructure Project Eligibility
The Reform Act created a new category of projects that qualify for the lower $800,000 investment threshold. These include infrastructure projects administered by federal, state, or local government entities and involve public works such as transportation, utilities, or other large-scale developments.
Sustainment Period Requirements
Previously, an investor’s capital had to remain invested throughout the two-year conditional permanent residency period. The new law simplifies this requirement. Now, the investment must remain deployed in the enterprise for a minimum of two years, beginning on the date of investment. The funds must remain at risk and actively used in the business during that time.
Visa Set-Asides
The Act also introduced visa set-asides, which are reserved allocations within the annual EB-5 visa quota. These include 20 percent of EB-5 visas for investors in rural areas, 10 percent for high-unemployment areas, and 2 percent for qualifying infrastructure projects. These set-asides are intended to prioritize investment in areas with greater economic need and may lead to shorter visa wait times for eligible applicants.
What Is the Difference Between Direct, Indirect, and Induced Jobs in the Context of the EB-5 Program?
To qualify for a green card under the EB-5 Immigrant Investor Program, an investor must show that their investment has created or will create at least 10 full-time jobs for qualifying U.S. workers. These jobs can be classified as direct, indirect, or induced, depending on the nature of the investment and how the project is structured.
Direct Jobs
Direct jobs are actual, identifiable positions created by the business that directly receive the EB-5 investment. These employees are hired by the enterprise in which the investor places their funds.
Example: An investor funds a new senior assisted living facility. The facility hires staff such as nurses, caregivers, kitchen staff, and administrators. These positions are considered direct jobs because they are employed by the business that received the investment.
Indirect Jobs
Indirect jobs are those created in businesses that provide goods or services to the EB-5 project. These jobs are not at the enterprise receiving the investment, but are generated through its operations.
Example: The senior assisted living facility contracts a local cleaning company and sources its food from a regional distributor. Jobs at those companies that exist because of the facility’s ongoing needs are classified as indirect jobs.
Induced Jobs
Induced jobs are created as a result of increased household spending by employees who hold direct or indirect jobs. As these workers earn and spend their income in the local economy, additional employment is supported in sectors like retail, food service, and transportation.
Example: A caregiver at the senior assisted living facility spends her wages at a nearby grocery store and takes her car to a local mechanic. The added business may lead to new hires at those establishments, and these are considered induced jobs.
Important Distinction by Investment Type
Only investments made through USCIS-designated regional centers can count indirect and induced jobs toward the EB-5 job creation requirement. Investors making a direct EB-5 investment can count direct jobs only. This is a key factor when choosing between a direct investment and a regional center project.
How Long Must the Jobs Created by an EB-5 Investment Be Sustained?
Jobs created through an EB-5 investment must be sustained at least until the time of filing Form I-829, which is the petition to remove conditions on permanent residence. The jobs must be full-time positions for qualifying U.S. workers and must either exist at the time of adjudication or be expected to exist within a reasonable time, typically considered by the United States Citizenship and Immigration Services (USCIS) to be within one year of filing the I-829.
There is no requirement for the jobs to remain in place permanently or beyond the approval of the I-829.
What Are Some Legislative Details About the EB-5 Program’s Inception in 1990?
The EB-5 Immigrant Investor Program was created by the U.S. Congress in 1990 as part of the Immigration Act of 1990, signed into law by President George H. W. Bush. The goal was to stimulate the U.S. economy through job creation and capital investment by foreign nationals.
The visa category was established under Section 203(b)(5) of the Immigration and Nationality Act (INA). It created a path to permanent residency for individuals who invest in a new commercial enterprise that creates at least 10 full-time jobs for qualifying U.S. workers.
At the time the law was passed, the main requirements included:
- A minimum investment of $1,000,000, or $500,000 if the project was located in a Targeted Employment Area (TEA), which means a rural area or an area with high unemployment
- Active involvement in managing the enterprise, either through daily operations or strategic policymaking.
- The invested capital had to be at risk and obtained through lawful means.
- The jobs created had to be direct, full-time, and filled by U.S. citizens or authorized workers (working at least 35 hours per week)
The program saw limited use in its early years, partly because of the strict requirements around direct job creation and investor involvement in management. To expand its impact, Congress passed legislation in 1992 creating the Immigrant Investor Pilot Program, which introduced regional centers. These entities allowed a more flexible investment structure and permitted indirect job creation to meet program requirements.
What Advantages Might Exist for Investing Through a Regional Center for the EB-5 Visa?
For EB-5 investors, there are two main paths: making a direct investment in a business or investing through a government-authorized regional center. While both can lead to a green card, many applicants choose the regional center route because of several practical benefits that align with USCIS guidelines.
Below are key advantages of investing through a regional center:
Job Creation Flexibility
One of the biggest benefits is how jobs are counted. Regional center projects can include direct, indirect, and induced jobs toward the 10-job requirement. These may include positions created at construction companies, suppliers, or local service providers connected to the project.
On the other hand, direct investors must show that the business itself creates jobs.
Less Active Involvement
Regional center investments are generally passive. Investors are not required to be involved in day-to-day operations or management decisions. This can be appealing to those who want to live in the U.S. but not run a business actively.
Pre-Structured Projects and Support
Regional centers offer pre-approved projects that are designed to meet EB-5 requirements. They often come with experienced teams who handle compliance, documentation, and job creation modeling. This can make the application process smoother and less burdensome for the investor.
Visa Set-Asides for Certain Areas
Under the EB-5 Reform and Integrity Act of 2022, certain regional center projects qualify for reserved visa categories, such as those in rural areas, high-unemployment areas, or infrastructure projects. This can reduce wait times and help investors from countries facing backlogs.
Geographic Flexibility
Because investors are not required to manage the business personally, they are not limited to living near the project location. This allows greater freedom in choosing where to reside in the U.S.
While the regional center route may not be suitable for every investor, it remains a popular option due to its flexibility, reduced involvement requirements, and access to reserved visa categories that may shorten wait times for some applicants.
How Can the Minimum Capital Investment Amount for the EB-5 Visa Be Reduced?
The standard minimum investment amount under the EB-5 Immigrant Investor Program is $1,050,000. However, U.S. immigration law allows this requirement to be reduced to $800,000 if the investment meets certain conditions related to project location or type.
There are two ways an investor can qualify for the lower $800,000 threshold:
1. Investing in a Targeted Employment Area (TEA)
A TEA is either:
- A rural area is a location outside a metropolitan statistical area and not within a city or town of 20,000 or more people.
- A high-unemployment area, where the unemployment rate is at least 150 percent of the national average
As of March 2022, only the United States Citizenship and Immigration Services (USCIS) can issue TEA designations. These are valid for two years and may be renewed if the area qualifies.
2. Investing in an Infrastructure Project
The EB-5 Reform and Integrity Act of 2022 also created a category for infrastructure projects that qualify for the reduced investment amount. These must:
- Be administered by a federal, state, or local government entity
- Involve public works such as transportation, utilities, or similar large-scale developments
- Be structured through a USCIS-designated regional center
Example
An investor contributes $800,000 to a public transportation redevelopment project in a high-unemployment district in Pennsylvania. The city’s transportation authority administers the project and qualifies as a public infrastructure project. The investor qualifies for the reduced investment amount because it meets both the job creation and infrastructure criteria and is managed through a regional center.
Even if the investment qualifies for the lower threshold, the applicant must still meet all other EB-5 requirements, including job creation, a lawful source of funds, and placing the capital at risk for the required period.
What Are the Acceptable Forms of Investment for the EB-5 Visa?
To qualify for the EB-5 Immigrant Investor Program, applicants must invest lawfully sourced capital into a U.S. business that creates jobs. The capital must be placed at risk and the investment must meet strict requirements set by the United States Citizenship and Immigration Services (USCIS), both in how the funds are obtained and where they are deployed. Below is a breakdown of the acceptable investment destinations and forms of capital, based on current U.S. immigration policy.
Where the Investment Must Be Made
The USCIS requires the investment to be placed into a New Commercial Enterprise (NCE) that meets the following conditions:
- It must be a for-profit business
- Formed after November 29, 1990, or restructured/expanded if older
- Lawfully conducting commercial activity
- Structured as a legal business entity (corporation, limited liability company, partnership)
- Able to demonstrate the creation of at least 10 full-time jobs for U.S. workers
This applies to both direct investments and those made through USCIS-designated regional centers.
Acceptable Forms of Investment Capital
Cash Investments
The most common and straightforward form of EB-5 investment is cash. This includes funds transferred from a personal bank account, business account, or trust account. USCIS requires full documentation showing how the cash was lawfully earned and transferred.
Cash Equivalents
Certain liquid financial assets, such as certificates of deposit or money market instruments, may also qualify, provided they can be converted into cash and placed at risk in the commercial enterprise. Like cash, the lawful source must be fully documented.
Assets Secured by Personal Property
Investors may use a loan secured by personal property they own (not by assets of the EB-5 business). The value of the collateral must be established, and the investor must be personally and primarily liable for the loan.
Important: Loans secured by the assets of the new commercial enterprise do not qualify as eligible investment capital.
Gifts and Inheritance
Funds received through a gift or inheritance are acceptable as EB-5 investment capital if:
- The original donor or estate can prove the lawful source of the funds, and
- The investor can show documentation of the transfer (such as a gift deed, will, or bank transaction record)
USCIS may request documentation from both the investor and the source of the gift or inheritance.
Proceeds from Asset Sales
An investor may sell real estate, a business, or other property to fund their EB-5 investment. The sale must be legitimate and well-documented, with records showing ownership history, sale terms, and receipt of proceeds.
Forms of Investment That Do Not Qualify
- Unsecured loans not backed by the investor’s personal assets
- Loans secured by the project itself
- Borrowed funds where the investor is not primarily liable
- Funds without clear documentation of a lawful source and path
The USCIS requires that all capital be at risk to generate a return, without any guarantee of repayment. It must also be the investor’s own capital, not borrowed from the enterprise benefiting from the investment.